From Business Insider - "The next housing crisis is here"

[Account Closed]

Bit of a click bait title, but interesting read from Business Insider.  The "crisis" as they describe it is lack of supply, particularly in starter homes, and how first time home buyers are getting crowded out of the market.  It includes a few tidbits on how investor activity is contributing to the current market dynamics.

Curious to hear everyone's thoughts on this - are you seeing these same trends in your individual markets? 

[Leland Barrow]

Low inventory and high prices will be followed by high inventory and low prices. Homebuilders will start booming until they over build. When the market is flooded with new home inventory older homes will drop in price. Investors will buy up old home inventory and rent them out. This will dry up inventory and we are back at low inventory and high prices.

Just a market cycle. The only thing that is obvious is the market is changing. Anything else is speculation. It is a sellers market and next it will be a buyers market. Investors that are buying on low margins right now will be in trouble. You can already see people willing to settle for lower cap rates, cash flow, and paying more than 70% of market value. I wouldn't buy at 70% market value right now. Maybe 50-60%. because 70% now could be 100% next year.

There is a KB home that I drive by that cant build inventory fast enough. Its KB....thats a sign....